MullenLowe sells majority stake in Indonesia to management

MullenLowe Group is selling the majority of its Indonesia business to local management holding company Lintas Agra Perkasa.

The IPG network will retain a 20% stake in what will be called MullenLowe Lintas Indonesia (MLI). MD David Setiaputra Lukas will continue to lead the agency.

The move is the latest in a series of decentralising steps for MullenLowe in the region. Two weeks ago the network announced that regional head Vincent Digonnet is retiring and that country CEOs Paul Soon and James Hollow will jointly lead the group in APAC. Last year, MullenLowe sold its operations in both Vietnam and Malaysia to local management. MullenLowe said in a release that the divestment in Indonesia is consistent with its strategy to create "a more agile network in Asia built around market, team and individual skill sets and experience".  

IPG added that the 80-20 ownership structure means both parties will retain more active collaboration and access to resources than would be the case in a full divestment.

MLI has integrated brand communications, digital, activation, design and content production specialist business units. 

“I believe change is an opportunity to become a more dynamic group while being a strong partner to clients, helping them to achieve their brand and sales goals," Lukas said. "When clients place their trust in MLI we will cherish that opportunity to strive for high standards of professionalism and ethics while producing fresh and effective communications strategies with great clarity of thinking. That is our heritage and that won’t change.”